SFA Update – One More Approval

The PBGC Special Financial Assistance program for troubled multiemployer plans approved a new plan for bailout:

The Management-Labor Pension Plan Local 1730 ILA (Longshoremen Local 1730 Plan). The plan, based in Mastic, New York, covers 478 participants in the transportation industry. The Longshoremen Local 1730 Plan became insolvent in November 2020. At that time, PBGC started providing financial assistance to the plan. As required by law, the Longshoremen Local 1730 Plan reduced participants’ benefits to the PBGC guarantee levels, which were roughly 50 percent below the benefits payable under the terms of the plan. PBGC’s approval of the SFA application enables the plan to restore benefit reductions caused by the plan’s insolvency and to make payments to retirees to cover prior benefit reductions. SFA will enable the plan to pay retirement benefits without reduction for many years into the future. The plan will receive $59.1 million in SFA, including interest to the expected date of payment to the plan. “The Special Financial Assistance approved today means that these 478 transportation workers and retirees will receive the full retirement benefits they earned,” said U.S. Secretary of Labor Marty Walsh, chair of the Pension Benefit Guaranty Corporation’s Board of Directors. “Since 2020, they have been receiving reduced pension payments through no fault of their own. Today’s action, made possible by President Biden’s American Rescue Plan, restores those benefits and delivers the secure retirement they were promised.”   In addition to the $59.1 million of SFA paid to the plan, PBGC’s Multiemployer Insurance Program will be repaid $2.9 million, which is the amount of the plan’s outstanding loans, including interest, for the financial assistance PBGC provided beginning in November 2020 and ending on the expected date of payment of SFA to the plan.

Our updated summary of the 36 plans in the system – 24 approvals and 12 under review:

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